nutrition & health at pepsico · nutrition & health at pepsico bccc conference april 2011...
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Nutrition & Health at PepsiCo
BCCC ConferenceApril 2011
Sue Gatenby PhDNutrition DirectorPepsiCo Europe
Agenda
Introduction to PepsiCo
Performance with Purpose
The need to change The promise of PepsiCo Global commitments Local action – the UK Health Report and 10 year
strategy
Our business
PepsiCo UK & Ireland is a £1.5bn food and drink business responsible for leading brands including Walkers, Tropicana, Quaker Oats and Pepsi (bottled in the UK by Britvic).
We employ 5,500 people across 13 sites in the UK.
We invested £16million in a new R&D centre in Leicester where the focus is on developing healthier products. Key PepsiCo manufacturing sites
And in the UK we have a diverse portfolio
Our brands
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We are a global business in transition…
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Gamesabaked snack for women (Mexico)
Smartfood(US)
G2 low calorie electrolyte beverage (US)
PepsiCo acquires SandoraJuices(Ukraine)
Sun Chips baked apple chips (Mexico)
PepsiCo acquiresStacy’s Pita Chipsand Naked Juice (US)
H2Oh! (South America)
PepsiCo acquiresDuyvis Nuts (Belgium, Netherlands)
Quaker Weight Control Instant Oatmeal (US)
Sunbites baked wheat snacks (Spain, Portugal)
PepsiCo merges with Quaker and Gatorade
Frito‐Layremoves trans fats (US)
Walkers Crisps reduces saturated fats (UK)
SoBe Lifewaterlaunches naturally sweetene 0‐Caloriewith PureVia(Latin America & USA)
Tropicana Smoothie
(UK)
QuakerHigh‐Fiber cookie(Mexico)
Frito‐Lay converts to sunflower oil (US)
Frito‐Lay 100‐calorie packaging (US)
PepsiCo acquires LebedyanskyJuices (Russia)
Quaker High Fiber Instant Oatmeal (US)
Elma SensaçõesAo Fornobaked chips (Brazil)
Propel vitamin‐enhancedfitness water(US)
Quaker Chewy 90‐calorie granola bars (US)
Trop50with 50% less sugar and calories (US)
Sabra Hummus joint venture (US)
Twistoslow‐calorie chocolate snacks (Mexico)
Del Hornobaked snacks (Mexico)
New Quaker Hearty Medleysare a new instant multigrain cereal with a heartier texture and real fruits and nuts (US)
Public health is a top political priority in the UK
Legislators have strong mandatesLegislators have strong mandates
Many influential voicesMany influential voices
• Reduce saturated fats, trans fatty acids, free sugars and salt in existing products
• Develop affordable, healthy and nutritious choices for consumers• Introduce new products with better nutritional value• Provide consumers with adequate and understandable product
and nutrition information• Practice responsible marketing that supports the
strategy…especially to children• Issue simple, clear and consistent food labels and evidence-based
health claims • Provide information on food composition • Assist in developing and implementing physical activity programs.
And there has been a Global Call to Industry for Action
WHO recommended actions to the private sector (2003, 2008)
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The Promise of PepsiCo – our Global Pledge
PepsiCo’s 2009 Annual Report was published in March 2010. It contains 47 global goals and commitments for Human, Environment,and Talent Sustainability
Our 2010 Annual Report, publishedlast week describes progress to date
Delivering Performance with Purpose
Encourage people to live healthier
Protect the Earth’s natural resources
Invest in our people
Encourage people to live healthier
• Increase the amount of whole grains, fruits, vegetables, nuts, seeds and low-fat dairy in our global product portfolio.
• Reduce the average amount of sodium per serving in key global food brands, in key countries, by 25 percent by 2015, with a 2006 baseline.
• Reduce the average amount of saturated fat per serving in key global food brands, in key countries, by 15 percent by 2020, with a 2006 baseline.
• Reduce the average amount of added sugars per serving in key global beverage brands, in key countries, by 25 percent by 2020, with a 2006 baseline.
Developing a healthier portfolio
It’s a promise to encourage people to live healthier
Provide more food and beverage choices made with wholesome ingredients that contribute to healthier eating and drinking
Products
Encourage people to make informed choices and live healthier
Marketplace
Actively work with global and local partners to help address global nutrition challenges
Community
The UK is taking local action
“Our future profit & growth will be driven by healthier products”
“By 2020 our business will be based on delivering fruit, vegetables, wholegrain and fibre”
http://www.pepsico.co.uk/health
Created with stakeholders – internal and external
Four workshops 40+ external stakeholders 1-2-1 meeting programme Focused on:
Government and Opposition
Regulator Key NGOs Key Academics
Internal alignment
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We showcased our track record
We’ve been taking a multi-pronged approach for several years to make our product portfolio healthier
Reformulation New healthier products
Acquiring healthier brands
• SunSeed Oil reduced sat fat across crisps and snacks by 70-80% (removed 40,000 tonnes of saturates from British diet)
• Reduced salt in Walkers crisps and snacks by 25 – 58%%, removing 2400 tonnes salt from UK diet
• Walkers Baked (70% less fat)
• SunBites (wholegrain)
• Planet Lunch and Paw Ridge (healthy childrensranges)
• Tropicana
• Copella
• Quaker
• V Water
To build trust, our future journey was crucial…
We set out a series of pledges including on reformulation and innovation to support our vision
Our commitments are designed to be challenging….
Key Pledges:
50% of our savoury snacks will be baked or include positive nutrition by 2015
65% carbonated soft drink can and bottle sales will be “no sugar” by 2015
A calorie cap of 160kcal across single serve savoury snacks without positive nutrition by 2015
To deliver 1.8bn servings of fruit and vegetables and 1.7bn servings of wholegrain each year by 2012
http://www.pepsico.co.uk/health
Progress to date
62% of packaged sales of Pepsi & 7UP are no sugar, up from 61% in 2008 (target 65% in 2015)
All Pepsi advertising spend has been on Max since 2005
Introduction of 600ml in no sugar only represents first marketing trial to try to encourage consumers to switch
2% reduction in sugar level of regular Pepsi already achieved
Progress to date
Magic Breakfast expect to meet our commitment to provide breakfast to 6000 children this year
Average 11.7% salt reduction achieved in 9 flavours of Walkers Core.
MSG removed from 10 Walkers Core flavours, from Sensations & Baked
"I understand that the scale and nature of the obesity challenge we face cannot be tackled by Government action alone. We need a partnership approach with business, the voluntary sector and social enterprise. That's why I welcome the publication of PepsiCo's report. It demonstrates exactly the kind of leadership from the food and drink industry that is required to help improve public health outcomes. The proposals - particularly in relation to reformulation and portion size - are entirely compatible with those set out in the Public Health Commission paper which we commissioned and was published last summer. I hope that other companies will be inspired by this report. Together, we can make it easier for people to make the healthy choices they want to make."
Andrew Lansley
The Responsibility Deal forms a natural part of our on-going journeyto reshape our product portfolio. By introducing this initiative, the Govt recognises the industry’s ability to reach and influence the diets of hundreds of thousands of people in the UK and make a profounddifference, both through our products and through our workplace.
Today’s launch of the Responsibility Deal sees the start of a process to help people balance the “energy in, energy out” challenge of modern life.
Richard EvansPresident, PepsiCo UK and Ireland
Responsibility Deal – March 15th 2011
Achieving this change will require concerted action across all The Responsibility Deal Networks and I hope all stakeholders will commit to playing their role. We are committed to playing our part
The industry has a responsibility to lead change
